DawnC
Employee Tax Expert

Deductions & credits

Energy Credits, nor the $500 Family credit have any effect on your standard or itemized deductions.   The standard deduction is a flat amount and your itemized deductions are the total of certain deductions on Schedule A.   If TurboTax did not generate Schedule A, your standard deduction is higher.      Example - if your standard deduction is $15,750 (single), you won't itemize unless the following items total more than $15,750.     Most common Itemized Deductions:

 

Medical and Dental out of pocket - only the amount over 7.5% of Adjusted Gross Income counts. +

SALT Taxes - State & Local tax OR Sales Tax, not both. +

Home Mortgage Interest  +

Charitable Contributions - limitations apply.   And there are other less common ones, see the link.

 

Once your tax is reduced to zero, non-refundable credits (energy credits and the $500 credit are both non-refundable) will not generate a refund.   This means if Line 24 is zero, you won't benefit from those credits.   Refundable credits can only reduce your tax to zero, it can't make it go negative.  

 

 

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